In the wake of the stock market plunge last week, Pre. Donald Trump said the market drop wasn’t because of his trade war. Trump said, “That wasn’t it. The problem I have is with the Fed. The Fed is going wild. They’re raising interest rates and it’s ridiculous.” He also said the Fed is “going loco.” In a Thursday interview, the president doubled down, saying “I’m paying interest at a high rate because of our Fed. And I’d like our Fed not to be so aggressive because I think they’re making a big mistake.”
Peter Schiff appeared on Fox Business Countdown to the Closing Bell along with National Alliances head of fixed income Andy Brenner to talk rate hikes, the stock market and where things might go next.
Could we be heading toward $5,000 gold?
Last week, there was a big sell-off in the bond market. Yields on the 10-year Treasury soared 11 basis points in one day. Global stock markets sold off the following morning and US stock markets followed suit. This week, things really got really ugly on Wall Street. The Dow dropped over 1,300 points in two days. In a video for SchiffGold, Peter Schiff said stock market investors “finally took notice of the carnage that was going on in the bond market.”
On Thursday, the price of gold popped, rising nearly 3%. But despite all of the action this week, most people in the mainstream remain complacent. The narrative is that this is a normal bull market correction. Peter said nothing could be further from the truth.
The economy is even a bigger bubble than the stock market.”
The mainstream is giddy about the “booming economy.” We have rising stock markets, continued job creation and solid GDP growth. But Ron Paul recently appeared on CNBC Futures Now and threw a big bucket of cold water on the mainstream narrative. He said we are barreling toward a recession.
Peter Schiff recently appeared on RT Boom Bust, along with Investor’s Advantage Corporation founder John Grace, to talk about the recent jobs report. Peter summed things up with a dire warning. Stagflation is coming and it’s going to be worse than 2008.
Countries like Russia, China and Iran have been looking for ways to limit their dependence on the US dollar for years. More recently, we’ve even seen American allies looking to de-dollarize the world. Last month, German foreign minister Heiko Maas called for the creation of a new payments system independent of the United States.
It’s gotten to the point people are beginning to discuss a “post-dollar” world.
RT’s Max Keiser recently talked about the issue of the US weaponizing its currency with the head of research for GoldMoney.com, Alasdair Macleod.
Investment and commodities guru Jim Rogers says we’re heading toward the worst bear market in his lifetime.
Rogers recently spoke a the MoneyShow in San Francisco. He said the first thing we need to understand is that in the wake of the 2008 financial crisis, the Federal Reserve “came to the rescue” and drove interest rates to the lowest level in recorded history.
Never in the history of the world have interest rates been this low. In some countries, they were actually negative. This has never, ever happened in the history of the world. Some Federal Reserve governors, when they think nobody’s listening, they acknowledge that this is an experiment. They don’t know how it’s going to wind up.”
But Rogers said he knows how it’s going to wind up.
World Gold Council chief market strategist John Reade recently talked to Commodity TV about the current state of the gold market and what he sees in the future.
Reade cast an optimistic tone, saying the supply and demand fundamentals point toward a healthy, growing gold market moving forward.
On May 15, Peter Schiff delivered the keynote address at the Cambridge House International Mining Investment Conference. Peter titled his speech “The Calm Before the Storm.” People are still generally optimistic about the economy, but as Peter said, everything feels great until you realize the party is over.
As Ron pointed out, it’s hard to keep up with all of the distortions in the marketplace thanks to a decade of Federal Reserve easy money.
How do you cover all the bubbles? The nature of what the Fed does by manipulating interest rates to lower than the market rate, everything has to be affected to some degree by a bubble and a distortion and a malinvestment, and excessive debt.”
Last month, US Global Investors CEO Frank Holmes said he thinks gold may well hit $1,500 this year. He listed the specter of increasing inflation, a weakening dollar, and income growth in China and India as three reasons to be bullish on the yellow metal.
This week, Holmes appeared on CNBC’s Squawk Box and continued to make a case for buying gold.